Digital ID adoption: Implementation and security concerns

As digital transformation accelerates, understanding how businesses are preparing for and implementing digital ID technologies is crucial for staying ahead in security and efficiency, according to Regula.

digital ID implementation

The role of digital identity in efficiency and services security

Digital identity is considered to be a way to improve the efficiency and security of services, reduce fraud, and enhance access to public services, ensuring that they are delivered quickly and to the right people. A digital ID is an online representation of an individual containing personal information, credentials, and attributes used to establish and authenticate identity in digital spaces. As such, digital identity is already a well-recognized concept in different sectors.

Digital IDs are poised to revolutionize sectors that rely heavily on secure and efficient identity verification. Survey results predict the benefits that will bring the fastest results are online financial transactions (46%), online account opening (38%), and e-commerce (33%), which reflects a strong expectation for these technologies to enhance user experience and trust.

According to the Forrester Consulting study “The New Imperative: Digital IDs,” 81% of large and enterprise-level companies from the aviation, banking, government, IT, and telecom sectors have at least a basic awareness of this technology, with almost half possessing a thorough understanding.

Moreover, some countries and sectors, primarily those with advanced digital infrastructures and regulatory frameworks, as well as high customer online interaction frequencies, have already made a leap towards its adoption.

Despite advancements in digital IDV technologies, 46% of respondents’ organizations still prioritize manual document verification. This method coexists with modern techniques, such as biometric verification (54%) and automated checks (53%). In industries like aviation (63%) and finance (44%) where security demands are stringent, physical documents provide unmatched authenticity.

Currently, 42% of organizations worldwide are actively integrating digital ID technologies into their systems, and 31% are in the early stages of implementation. Another 17% of respondents are now developing a strategic plan to begin this transformation.

The United Arab Emirates shows higher integration rates, where the majority of businesses (54%) have already moved to active integration. At the same time, places with stricter regulations, such as the US and Europe, are taking a more cautious approach, with only 37% and 39% of companies respectively claiming to be at the integration stage.

Key concerns in growing digital ID adoption

As digital ID adoption grows, it is essential to recognize and address the potential negative impacts respondents highlighted. The most significant concern (noted by 50% of respondents) is the increased risk of data breaches and cybersecurity threats, which underscores the critical need for robust security measures in digital ID systems.

44% voiced fears about privacy and are worried that digital IDs could deepen surveillance and data tracking. Additionally, 35% said the potential for technology failures and identity theft alarms is a negative, which highlights the importance of reliable systems.

“As the Forrester experts note in the study, the complexities and disparities of global implementation across various landscapes highlight the strategic necessity of adopting a hybrid approach to digital IDs. Moreover, there is no single, universally accepted set of global standards for digital IDs that applies across all countries and sectors. Therefore, the large number of companies at the stage of active implementation demonstrates a growing need for frameworks and guidelines that aim to foster interoperability, security, and privacy across different digital ID systems,” said Ihar Kliashchou, CTO at Regula.

“The good news is that several international organizations and standards bodies — New Technology Working Group in the International Civil Aviation Organization, the International Organization for Standardization (ISO), etc. — are working towards those standards. This seems to be a case in which slow and steady wins the race,” concluded Kliashchou.

Digital IDs are set to transform how transactions and customer data are secured, addressing both current vulnerabilities and anticipating emerging threats.

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